Saigon forecast to become Asia’s second fastest growing economy by 2021: report

Ho Chi Minh City is said to be Asia's second fastest growing economy by 2021. Photo by VnExpress/Quynh Tran

Vietnam’s southern metropolis is on track to achieve 8 percent annual growth over the next five years.

Ho Chi Minh City will become the second fastest growing economy in Asia by 2021, Bloomberg cited a new study by the UK-based Oxford Economics as saying in a Wednesday report.

In the next five years, HCMC's economy is expected to grow by 8 percent each year, according to the study, which ranked Asia's 30 largest cities.

The city is the only non-Indian city in the top five that also includes New Delhi, Chennai, Mumbai and Hyderabad, reflecting its success in establishing itself as a manufacturing center, as well as its strong services sector, according to Bloomberg.

In January, Chicago-based financial and professional services firm JLL ranked HCMC the world’s second most dynamic city, after India’s Bangalore.

The city was categorized in the “High Potential Cities” that are driven by low costs, rapid consumer market expansion and high levels of foreign direct investment.

In the first half of 2017, the southern economic hub attracted $2.15 billion in foreign investment, double the amount it received in the same period last year, official data from the Ministry of Finance showed.

With economic expansion of 7.76 percent during that period, the city expects to hit annual growth of 8.4-8.7 percent, its leaders told local media in June.